Why TRG Share Is Falling? Price Drops 5% in One Day

The TRG share price witnessed a significant drop in the Pakistan Stock Exchange (PSX) on Friday, triggering investor concern. The TRG stock opened at Rs 64.75 but closed at Rs 56.17, falling by 5% within the day.

This decline in TRG share price followed a decision by the Sindh High Court, which halted a proposed acquisition involving TRG Pakistan. The case involves Bermuda-based Green Tree Holdings, which attempted to acquire nearly 30% of TRG’s shares. The court observed that Green Tree had used TRG’s own funds to purchase the shares — a violation of Section 86(2) of the Companies Act 2017.

As a result, the court declared the acquired shares as treasury shares and ordered Green Tree to return them. It also canceled the ongoing takeover offer and directed TRG to conduct new board elections. The legal proceedings were initiated on the request of TRG’s founder, Zia Chishti.

Before the ruling, investors had been actively buying TRG shares due to expectations of the acquisition. After the court blocked the deal, many shareholders started selling their holdings, leading to the decline in TRG PSX stock.

On the same day, the KSE-100 Index experienced high volatility, with a swing of nearly 1,000 points. The index peaked at 120,828 during the first session and dropped to 119,872 in the second, before closing at 120,023 — a gain of 20 points overall.

According to market analysts, geopolitical tensions, especially between Iran and Israel, continue to influence investor sentiment, causing frequent ups and downs in the PSX.

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Rida Shahid
Rida Shahidhttps://hamariweb.com/
Rida Shahid is a content writer with expertise in publishing news articles with strong academic background in Political Science. She is imaginative, diligent, and well-versed in research techniques. Her essay displays her analytical style quite well. She is currently employed as English content writer at hamariweb.com.

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